Have you looked into FHA loans in Ann Arbor, Michigan? Did you get enough good information to decide whether or not this would be a good option, or did you hear so much gobbledygook that you were more confused than when you started? Gem Home Loans will cut through that confusion. We’ll give you straight talk, clearly spelling out the pros and the cons of FHA and other kinds of mortgage loans. People turn to us on a regular basis because they know we’ll never try and push them in any specific direction. They know we always look out for them, and we’ll do the same for you.
The Advantages of an FHA Loan
Many people would love to buy a home, but they assume they can’t because they don’t have enough for a down payment. Or, they’re buying for the first time and they have no idea whether or not they could afford the monthly payment. They may have credit scores that aren’t so great, and just assume no one would approve them for a loan.
If you fall in any of the above categories, an FHA loan may be exactly what you need. These are just some of the reasons you should consider applying for one.
- Credit issues – You don’t have to have fantastic credit in order to qualify. In fact, you might only need a score of about 580 or higher. For most conventional loans, you need at least a 620 score to even have a chance of qualifying. There’s a chance you could get an FHA loan if your score is between 500 and 579, but you’d probably need to put down 10 percent of the purchase price. If your score is 580 or above, you would only need a 3.5 percent down payment.
- Budget-friendly – You might not even have to put the 3.5 percent down yourself. FHA loans allow others to provide your down payment as a gift. It could come through a charitable organization, a friend or a family member.
- Housing flexibility – Houses aren’t the only kinds of dwellings covered by FHA loans. You may qualify if you’re trying to buy a condo or even a manufactured home – provided it’s built on a permanent foundation.
The Drawbacks
FHA loans aren’t for everyone, of course. These are some of the reasons why you might want to look at another option.
- It has to be your primary residence – If you’re going to get an FHA loan, it will have to be for your main home. You’ll have to pursue another option if you’re looking for a vacation home, or looking for a house as an investment.
- You’ll have insurance costs – You’ll have to pay insurance premiums each month. However, once you build 20 percent equity, that requirement may go away.
- Health and safety standards – You’ll need to go another route if you’re planning to buy a fixer-upper. FHA loans are only for buildings that meet minimum standards and are sound from structural perspective. They aren’t for people who plan on flipping homes after fixing them up.
Ready to Learn More?
Gem Home Loans experts are ready to answer any questions you may have regarding FHA loans in Ann Arbor, Michigan. Call (248) 780-1030 or get in touch by using our online contact form.
